Safest Ways to Store Your Crypto for the Long-Term in 2024

Crypto traders face various challenges when investing in cryptocurrencies, from market volatility to the risk of losing funds. Such losses can happen in several ways, either due to user error, malware, or even outright theft. Given these risks, it's no surprise that traders are constantly searching for the safest way to store crypto.

If you happen to be one of those traders, you’re in the right place. In this guide, let's take a look at how to safely store crypto and cover essential best practices to help ensure that your funds remain protected. 

Plus, I’ll cover some of the most reliable wallets, like Ledger Flex and Trezor Safe 5, which many traders consider the safest places to store their crypto.

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Types of Safe Cryptocurrency Storage

It’s apparent that cryptocurrencies are becoming more mainstream every year. This was especially shown in 2023, when the crypto market saw significant growth, with the total market capitalization reaching $1.72 trillion.^[1] Unfortunately, with this expansion comes added risks, so finding the safest way to store crypto has become more important than ever.

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Before we dive into how to store cryptocurrency safely, let's first talk about the different storage solutions available. This is important because storing cryptocurrencies is a lot different from just putting your money into a traditional bank account. 

When dealing with cryptocurrencies, you’re working with blockchain, which is a decentralized system. This decentralization gives you full control over your crypto, or rather, the private keys that prove your ownership of the assets on the blockchain. However, this also means there’s no central entity to help you if something goes wrong. You're entirely responsible for keeping those keys safe.

That’s where crypto wallets come in. A crypto wallet is essentially a tool—whether it’s a software program or a physical device—that helps you store and manage your private keys, linking them to your digital assets.

When deciding where to store Bitcoin or other cryptocurrencies, you generally have two main types of storage solutions: hardware and software wallets. Each option provides different levels of convenience and security, so choosing the right one depends on how you plan to use your assets.

To better understand your options, take a look at this overview of the different types of wallets available so you can decide which one is best for keeping your assets safe and secure.

Table: Comparison of software and hardware wallets.

Now that you have a “snapshot” of the different crypto storage options, let's take a closer look at each of them. I'll start with the hardware wallet, widely considered the safest place to store cryptocurrencies.

Hardware Wallets (Cold Storage, AKA, the Safest Way to Store Crypto)

If you’ve been researching how to store cryptocurrency offline, you’ve probably come across terms like "cold storage" and "hardware wallet". While these terms are sometimes used interchangeably, they actually refer to slightly different concepts. 

Cold storage is a broad term that describes any offline method of storing cryptocurrencies. This includes hardware wallets as well as other options like paper wallets, both of which we’ll explore further in this guide.

Hardware wallets, on the other hand, are physical devices designed to securely store private keys offline. Since they are not connected to the internet, hardware wallets provide strong protection against potential online threats, such as software vulnerabilities, viruses, and hacking attempts.

Another key advantage of a hardware wallet is that it gives users full control over their private keys. This means you aren’t relying on third-party services or custodians, such as an exchange, to keep your assets safe. 

By eliminating these intermediaries, hardware wallets reduce the risk of scams, hacks, or other security breaches. Thanks to such robust security features, hardware wallets are widely regarded as the best way to store crypto long-term.^[2]

So, if you’re looking for the safest place to store Bitcoin or any other cryptocurrency, hardware wallets are an excellent option to consider. That said, le'ts take a closer look at some of the most trusted hardware wallet options available that might suit your needs.

Ledger Flex

When looking into the safest way to store crypto, Ledger Flex breaks through the industry with its best-in-class security standards. Released just recently in 2024, Flex is a top-tier hardware wallet designed to securely store your coins and NFTs offline.

It’s a touchscreen-based wallet (powered with E Ink technology for a clear transaction signing process), compatible with all major desktop operating systems. It can also connect to mobile devices via Bluetooth or NFC (Near Field Communication) for added convenience.

Plus, Ledger Flex supports over 5,500 cryptocurrencies and can store up to 100 applications simultaneously, allowing users to manage a diverse portfolio from a single device. 

On top of that, the wallet uses a CC EAL6+ certified secure element chip, which makes it tamper-resistant and well-protected against physical and digital threats. Users must set up a PIN code to unlock the device, and there's also a 24-word recovery phrase, which allows access to your wallet if the device is lost or damaged. 

So, to satisfy your curiosity about where to store Bitcoin or other cryptocurrencies securely, Ledger Flex can be an ideal option.

Ledger Stax

Ledger Stax is a step up from the Nano lineup, offering improved features and extra convenience with its curved touchscreen exterior. Also protected by E Ink for improved transparency in transaction approvals, Stax supports more than 5,500 cryptocurrencies and can store up to 100 apps via Ledger Live.

The wallet can seamlessly connect to mobile devices, either via Bluetooth or NFC, and desktops through a USB-C connection. Most of all, Stax is equipped with a CC EAL6+ chip to ensure users’ private keys remain secure, and like Ledger Flex, it requires a PIN code for access.

That said, Ledger Stax's pricing is significantly more pricey than Flex (to compare, the former is $399, while the latter is $249). So, it all goes back to your preference: do you prefer the premium one (Stax) or the budget-friendlier version that does not compromise on specifications (Flex)?

Trezor Safe 5

For a hardware wallet that can handle a staggering variety of cryptocurrencies, the Trezor Safe 5 is hard to beat. This is the latest hardware wallet from Trezor, capable of supporting over 7,000 different cryptocurrencies. 

To keep your assets secure, it’s equipped with an NDA-free EAL 6+ secure element, which offers robust protection against both physical and digital attacks, making it one of the safest places to store crypto.

In terms of security, users can set up a PIN and an optional passphrase to add extra layers of protection. For recovery, the wallet offers a flexible backup option with a 20-word backup that can be configured as either a single-share or multi-share backup to minimize the risk of a single point of failure. Alternatively, you can stick to the traditional 12 or 24-word seed phrase if that's your preference.

What sets the Trezor Safe 5 apart is its color touchscreen, which makes it easier to view transaction details and confirm actions. Additionally, the device is built to last, featuring the Gorilla Glass protection that helps resist scratches and damage.

Trezor Safe 3

Secure and swift—exactly what users want in a wallet, and the Trezor Safe 3 doesn’t disappoint. In just 15 minutes, you can set it up and start protecting your assets with ease. Similar to Trezor Safe 5, it also supports over 7,000 cryptocurrencies and is equipped with an NDA-free EAL 6+ secure element, safeguarding assets from potential threats. You also have the option to set up a PIN and passphrase for extra security.

In terms of recovery, the Trezor Safe 3 offers both multi-share backup options and the standard seed phrase recovery method, allowing you to choose what works best for you.

Unlike the Safe 5, the Safe 3 uses navigation buttons instead of a touchscreen, but it’s equipped with an easy-to-read OLED screen.

So, if you're wondering how to store Bitcoin or other cryptocurrencies securely, both the Trezor Safe 5 and Safe 3 provide ideal options, with the Safe 5 offering advanced features and the Safe 3 providing a quicker setup.

Software Wallets (Hot Storage)

In the previous section, we covered how to store cryptocurrencies offline with cold storage solutions. Now, let’s dive into another option that offers more convenience—software wallets or hot storage. These wallets are connected to the internet, making them more accessible but also more susceptible to online threats.

Don't get me wrong, though. Software wallets are still safe to use, and they are used by many due to the said convenience. While it might not be THE safest way to store crypto, it's not like you can't rely on it – there are many secure software wallets. Just make sure to be cautious and store smaller amounts of crypto in those.

The best practice would be to have both – a hardware and a software wallet (the former for long-term crypto storage, the latter for convenience). I'd say the combination of both is the safest and most convenient way of storing crypto.

Now, there are various types of software wallets to choose from, including desktop wallets, web extensions, web-based wallets, and mobile apps. These wallets are incredibly easy to use and are ideal for frequent transactions.

Software wallets can be further divided into two categories: custodial wallets and non-custodial wallets. The key difference lies in who controls the private keys.

Custodial wallets, like those found on exchanges like Binance or Bybit, store the private keys on behalf of users. This setup is easier for beginners, but if the exchange gets hacked, users' funds might be at risk.

Therefore, custodial wallets might not be THE safest way to store cryptocurrencies. However, reputable exchanges usually have strong security measures and failsafe set in place for such situations.

	BYBIT	BINANCE
Overall Score	9.8	9.6
Best For	More Advanced Users	Buying, Trading, and Holding a Wide Variety of Cryptocurrencies
Operating Countries	Russia, South Korea, United Kingdom, Ukraine, Turkey, +150 more	Turkey, Russia, Argentina, Vietnam, Ukraine, + 40 more
Latest Coupons	CLAIM $30,000 All Bybit Coupons	REDEEM $600 BONUS All Binance Coupons
Verdict	A popular crypto derivatives exchange with some super-low trading fees.	One of the leading crypto exchange platforms in the industry.
	Visit site Read review	Visit site Read review

Table: Some general information about the Binance and Bybit exchanges.

On the other hand, non-custodial wallets give you full control over your private keys, which not only enhances security but also places the responsibility of managing those keys entirely on you.

So, let’s explore some examples of secure software wallets that you can consider to store your crypto.

Binance Web3 Wallet

The Binance Web3 Wallet is a versatile, non-custodial crypto wallet integrated into the Binance app. It allows users to easily explore decentralized applications (dApps) and engage in DeFi activities directly from its interface, making it highly convenient for active traders and DeFi enthusiasts.

One of its standout features is multi-party computation (MPC) technology. This advanced security feature splits your private key into three different key shares. On top of that, the wallet includes built-in risk controls to protect users from interacting with potentially malicious smart contracts, making it one of the safest ways to store crypto when using decentralized applications.

Coinbase Wallet

Experienced crypto users are likely familiar with Coinbase Wallet, a popular, non-custodial cryptocurrency wallet. It integrates seamlessly with various dApps, allowing users to participate in decentralized finance (DeFi), gaming, and other blockchain-based activities without leaving the wallet’s interface.

Coinbase Wallet also prioritizes security. It offers features like biometric authentication (using fingerprint or facial recognition), two-factor authentication (2FA), and secure seed phrase backups to keep your funds protected. If you're wondering where to securely store Bitcoin and other crypto assets while using dApps, Coinbase Wallet can be a solid choice.

Paper Wallets (Cold Storage)

Previously, we discussed hardware wallets as the safest way to store cryptocurrencies. Still, there was another form of cold storage quite popular during the early days of Bitcoin: the paper wallet. A paper wallet is a physical document that securely holds your public and private keys.

Back then, paper wallets were often considered the best way to store crypto long-term. Why? Because they are completely offline, providing immunity from online hacking attempts, and they give users full ownership of their private keys. To create a paper wallet, users generate the keys using a trusted wallet generator and then print them out for safekeeping.

However, while paper wallets are indeed safe from online threats, they come with their own set of risks. They are highly vulnerable to physical damage or loss. If a paper wallet is destroyed or misplaced, there’s no way to recover your funds, making the loss permanent. 

So, while paper wallets have their merits, they might not be the safest place to store Bitcoin or other digital assets compared to more advanced storage solutions.

What to Consider Before Choosing a Crypto Storage?

When choosing the safest way to store crypto, there are several important factors to keep in mind before making your decision.

Factor 1: Short- VS Long-Term Storage

First, think about how long you plan to hold your Bitcoin or other cryptocurrencies. A software wallet might be more convenient if you’re looking to trade frequently or only keep your assets for a short time. These wallets offer quick access to your crypto, making them ideal for active traders.

However, if you’re planning for the long haul, a hardware wallet remains the best way to store crypto long-term. These wallets provide better protection against online threats, and they’re also more secure when it comes to physical damage or loss.

Factor 2: Security Features

Secondly, before deciding where to store Bitcoin or other assets, carefully evaluate the wallet’s security features.

Strong security measures like encryption, two-factor authentication (2FA), and secure backup options are critical when figuring out how to keep your crypto safe.

Factor 3: Regulatory Compliance

Another key consideration is compliance with local laws. Some wallets might be restricted or banned in certain regions due to regulations. Make sure the wallet you choose is accessible where you live to avoid potential service interruptions or loss of access to your funds.

Factor 4: Cryptocurrency Support

Additionally, not all wallets support the same cryptocurrencies. If you’re building a diverse portfolio, check that the wallet supports all the assets you hold. This way, you won’t have to manage multiple wallets.

Factor 5: Customer Support

Customer support is another vital factor. Crypto transactions can be tricky, and having responsive customer service can make a huge difference if any issues arise. This is crucial when considering how to safely store crypto.

Factor 6: Learning Curve

Finally, your technical skills and experience with crypto technology should guide your decision. If you’re new to crypto, a user-friendly wallet with an intuitive interface and helpful support might be the way to go. More experienced users may prefer more advanced features.

By considering those factors, you'll be in a better position to find the safest way to store crypto that aligns with your needs.

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Challenges of Storing Cryptocurrency

Storing cryptocurrencies can be a bit tricky. Even when you think you’ve found the safest way to store crypto, challenges can still arise. So, let’s explore some common issues you might face and how to be better prepared.

• Online Hacking: Digital wallets, especially those connected to the internet, are at risk of cyberattacks, which could result in losing a significant amount of your assets. If security is your top priority, using a hardware wallet is considered the safest way to store cryptocurrency. It keeps your private keys offline and away from hackers.
• Physical Damage or Loss: Hardware and paper wallets can be easily damaged by water, fire, or misplacement, resulting in the irreversible loss of your crypto. So, take extra precautions to avoid theft or mishandling. Just to illustrate, James Howell famously lost 8,000 BTC after accidentally throwing out a hard drive containing his private keys. While cold storage is often the safest way to store crypto, you still need to handle it with care.
• Phishing Scams: These scams are more common than you might think. Hackers often trick users into revealing sensitive information by sending fake emails or creating fraudulent websites. Always double-check before clicking on any links or providing personal info.

• Regulatory Risks: As mentioned before, keeping an eye on local cryptocurrency regulations is essential. New laws could affect how to store Bitcoin and other crypto, making it harder to access or trade them, thus potentially impacting your assets’ value.
• User Errors: Simple mistakes, like sending your crypto to the wrong address or misplacing your private keys, can lead to permanent loss of funds. Always double-check every transaction, and consider multiple backups of your private keys to avoid costly errors.

Even the most secure wallet cannot safeguard assets against every possible challenge. Staying vigilant and taking proactive precautions are crucial steps in finding the safest way to store crypto.

Best Practices for Storing Cryptocurrency

Given the complexities and risks of storing cryptocurrency, understanding best practices is crucial for finding the safest way to store crypto. It’s important to have a clear plan in place to protect your investments and reduce vulnerabilities. Let’s take a look at some of the best practices you can implement when storing your crypto.

First, traders widely recommend using a combination of hot and cold wallets. Cold wallets, like hardware wallets (Ledger Flex or Trezor Safe 5), are ideal for long-term storage. They keep your private keys offline, making them the safest places to store Bitcoin and other cryptocurrencies by greatly reducing the risk of online threats. 

On the other hand, hot wallets are suitable for everyday transactions. They are connected to the internet, offering quick access.

To protect your assets further, spread your cryptocurrencies across different storage methods. For example, keep the majority of your holdings in cold storage while using hot wallets for smaller amounts you plan to trade or spend. This way, if one wallet is compromised, you won’t lose everything.

Another critical tip for how to keep your crypto safe is to back up your keys. Remember to regularly back up your wallet data and securely store your recovery phrases in multiple safe locations. This is because losing access to your private keys could mean losing your crypto forever, so backups are crucial.

Lastly, always be cautious when accessing your wallets, especially if using a software wallet. Avoid public Wi-Fi connections or, better yet, use a VPN for added security. As crypto technology evolves, so do the threats. Therefore, ensuring your connections are secure is an easy but vital step.

Finding the safest way to store your crypto involves more than just selecting the best wallet that balances security and convenience. It's also about staying vigilant and putting in the effort to ensure your assets remain protected.

How to Store Cryptocurrency

As explained before, crypto can be stored both online and offline. Finding the safest way to store crypto is important, but equally crucial is choosing a method that fits your specific needs. Since both options serve different purposes, let’s explore how to store cryptocurrency offline and online.

The Hot Method

If you prioritize convenience, using a hot wallet to store your crypto online might be the ideal choice. Here’s a simple guide to setting up a hot wallet:

Step 1: Choose the hot wallet you want to use. For this example, let’s go with the Binance Web3 Wallet.

Step 2: Download and install the Binance app on your device. It’s available on Android, iOS, Windows, and MacOS.

Step 3: Sign up on the app with your preferred credentials.

Step 4: Head to the wallet section, select [Web3], and follow the prompts to create a new wallet. You might be asked to verify your identity as part of the setup, so have your ID ready. Once verified, your online wallet will be up and running, providing convenient access for frequent transactions.

Setting up a hot wallet is simple and free, and once completed, you’re ready to start storing your assets online—making it an easy solution for those wondering how to store Bitcoin and other cryptocurrencies.

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The Cold Method

Storing crypto offline is often considered the safest place to store Bitcoin and other cryptocurrencies. While steps may vary slightly between different hardware wallets, let’s use the Ledger Flex as an example of how to safely store crypto offline.

Step 1: After unboxing your device, download the Ledger Live app on your computer or mobile device.

Step 2: Turn on your wallet, then follow the prompts to create a PIN (up to 8 digits). You'll also receive a 24-word recovery phrase, which is crucial to keep safe. This phrase is essential if you need to recover your wallet due to loss or damage.

Step 3: Once you’ve set up your PIN and recovery phrase, connect your Ledger Flex to your computer. Launch the Ledger Live app and follow the setup prompts.

Step 4: In the Ledger Live app, go to [Portfolio], then click on [Add account]. Follow the instructions on your Ledger device to verify.

Step 5: To transfer assets to your offline wallet, get your wallet address from your Ledger Live account. Then, transfer your crypto from an exchange to this address to store it securely offline.

The process may take a few extra steps, but offline storage ensures your assets stay as secure as possible.

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Conclusion

The bottom line is that using a hardware wallet is the safest way to store cryptocurrency. Since it’s offline, your assets are protected from online threats, and certain hardware wallets, like Ledger Flex and Trezor Safe 5, even feature tamper-resistant chips for added protection from physical attacks.

For users who trade or transact frequently, software wallets like Coinbase Wallet or the Binance Web3 wallet might be more practical. They're always accessible due to being online, easy to set up, and ideal for beginners.

Regardless of the method you choose, following best practices is crucial since there’s always a risk of losing funds due to user error or external threats. Always stay vigilant about how to safely store crypto and protect your assets!

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Zhang X., Chen Z., Wang, S.: ‘A study of the impact of cryptocurrency price volatility on the stock and gold markets’;

2. Suratkar S., Shirole M., Bhirud, S.: ‘Cryptocurrency Wallet: A Review’.